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What do we mean by "property rights" and why are they important to a society? How can external costs be eliminated by assigning property rights?
To increase its market share, Sole Brother Inc. decided to borrow $50,000 from its banker for the purchase of newspaper advertising for its shoe retail line. The loan is to be paid in four equal annual payments with 15% interest. The loan is discount..
According to the Onondaga reservation located south of Syracuse, Lake Onondaga is heavily polluted with Methyl Mercury due to the fact that Allied Chemical discharged around 165,000 pounds of waste. Where A is the methyl mercury abated in thousand po..
Suppose 40 percent of a population all receive an equal share of p percent of the nation’s income, where 50 ≤ p ≤ 100. The remaining 60 percent of population also shares the rest of the income equally. For any such p, what is the Gini coefficient for..
Many national brands are supplying products to be sold by retailers under the retailer’s own private label. For example, Purina, Borden, Heinz – have all admitted to supplying products (sometimes lower in quality) – to be sold under the retailers’ ow..
Another term for standard of living is “output per person.” How has China raised its output per person in the last two decades? Are these methods applicable to the United States? Explain.
Is limitless growth really possible? What forces do you think will be most important in slowing or halting economic growth?
Tom was a tall man who operated a successful restaurant that he owned. He believed that tall people commanded more respect in a restaurant. Accordingly, he never hired a waiter or waitress who was less than six feet tall. After a few inquiries, she l..
Explain how the aggregate expenditure function shifts in response to changes in each of the following variables: a. The real interest rate increases. b. Consumer confidence decreases. c. Higher taxes are imposed on business profits. d. The economies ..
Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer pa..
What is the elasticity of supply in that range of the supply curve? How much tax revenue does the government collect?
Consider the following game. There are four players. Each player i (where i = 1, 2, 3, 4) si- multaneously and independently selects her contribution si ∈ [0, 10]. Find all Nash equilibria (if any). Are there any dominated strategies? Are there any d..
Teaming agreements are sometimes defined as coop-etition. What does this imply and what are some of the disadvantages of this partnership? Explain your responses..
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